MOVE TO LIMIT EAI PACT FALLS SHORT IN COUNCIL

In a dramatic late-night meeting Monday, the Hartford city council narrowly killed a measure that would have sharply restricted any school-management contract with Education Alternatives Inc.

The close vote revealed how divided city officials are on whether to make Hartford the first city in the nation to privatize management of all of its 32 public schools. Members voted 4-3 for the resolution, but because five votes are needed to pass, the measure failed.

Mayor Michael P. Peters spoke for those who opposed the restrictions, which would have imposed limits on how EAI bought equipment, paid bills and set interest rates on loans to the school system. Saying that he is not satisfied with his own children's education in city schools, Peters said he favors hiring EAI.

"It's a bold step. It's a scary step. What is the risk? I don't know," Peters said. "I do know that what we have now isn't working. I'm willing to take the risk."

Majority Leader John B. O'Connell, who expressed fundamental doubts about EAI's ability to run the schools, supported the restrictions. Nevertheless, he said he respected the council's decision and vowed to try to help negotiate a contract with the Minneapolis-based company.

A city hall negotiating committee is scheduled to resume discussions with EAI on Aug. 16.

Monday's meeting took on the tone of a confessional, as one by one council members put their opinions about school privatization and EAI on the record. The resolution that prompted the debate was submitted by Councilman Nicholas J. Fusco, who said he wanted to get his colleagues to publicly state their positions on the controversial subject.

DiPentima and Caro, both members of the negotiating committee, favored moving forward with contract talks, but they expressed reservations about ceding too much financial control to EAI. O'Connell was the most critical, saying he had a "problem of trust" with the company and criticizing the school board for its handling of the contract process.

"EAI is not the magic bullet," he said. "I have significant doubts that the hiring of EAI will achieve any of the educational advancements that we are seeking."